Exchange: LSE | Sector: Technology | Industry: Communication Equipment
Q4 2024
Published: Apr 29, 2025
Earnings Highlights
Revenue of $48.09M up 12.5% year-over-year
EPS of $-0.10 increased by 91.7% from previous year
Gross margin of 37.3%
Net income of -566.00K
"No transcripts available to extract management quotes in the provided data." - N/A
Inseego Corp (0A52.L) QQ4 2024 Results Analysis: Mixed Growth Across IoT/5G Solutions, Earnings Pressure from Non-Operating Items
Executive Summary
Inseego’s QQ4 2024 results reflect a company navigating a volatile hardware and software solutions market within the Technology sector, with a revenue increase year-over-year but a persisting net loss driven by sizable non-operating charges. Revenue for the quarter was USD 48.09 million, up 12.5% year-over-year, signaling demand for Inseego’s 4G/5G wireless hardware, IIoT solutions, and cloud-based SaaS offerings. However, the company posted a net loss of USD 0.57 million and an EBITDA of negative USD 12.31 million, highlighting that operating profitability remains constrained by non-cash and other non-operational items, including a substantial other income/expenses drag of USD -17.75 million. On a positive note, operating income was USD 1.79 million, yielding an operating margin of approximately 3.72%, aided by disciplined cost management in the core business despite higher non-operating charges.
Balance sheet leverage persists with a total debt load of USD 60.71 million and net debt of USD 21.11 million, while stockholders’ equity remains negative at USD -12.86 million. The company ended the period with USD 39.60 million of cash and cash equivalents, providing liquidity to fund ongoing investments in R&D and go-to-market initiatives. Free cash flow remained negative at USD -13.26 million, resulting largely from working capital dynamics and cash outlays for investing activities, despite a sizable cash balance.
The QQ4 2024 performance suggests that Inseego is balancing near-term profitability risks against a longer-term growth thesis centered on IoT/IIoT solutions, private 4G/5G networks, and SaaS platforms such as Inseego Subscribe. The absence of explicit forward guidance in the provided data requires investors to closely monitor quarterly trajectories in revenue, gross margins, and operating expenses, as well as the evolution of non-operating items that have historically driven large swings in net income. Given the current liquidity position but negative equity, the stock presents an elevated risk-reward profile pending evidence that operating cash flow and EBITDA improve sustainably and that leverage dynamics stabilize.
Key Performance Indicators
Revenue
48.09M
QoQ: -11.00% | YoY:12.47%
Gross Profit
17.94M
37.32% margin
QoQ: -4.55% | YoY:125.60%
Operating Income
1.79M
QoQ: 76.18% | YoY:125.80%
Net Income
-566.00K
QoQ: -106.31% | YoY:96.05%
EPS
-0.10
QoQ: -126.32% | YoY:91.74%
Revenue Trend
Margin Analysis
Key Insights
Revenue: USD 48.087 million; YoY change +12.47%; QoQ change -11.00% (vs Q3 2024 USD 54.032 million). Gross margin (GAAP gross profit / revenue) USD 17.944 million, gross margin 37.32% for the quarter; YoY gross profit up 125.6%, QoQ down 4.55%.
Operating income: USD 1.79 million; operating margin 3.72%. YoY operating income up ~125.8%; QoQ up ~76.18%.
EBITDA: USD -12.31 million; EBITDA margin -25.59%. The EBITDA figure is dominated by non-operating items and does not reflect cash-based profitability.
Net income: USD -0.566 million; net income margin -1.18%. YoY net income up 96.05% (negative base in prior year), QoQ decline of -106.31%.
Earnings per share (basic/diluted): -$0.10 per share; YoY EPS up ~91.74%; QoQ EPS down ~126.32%.
Financial Highlights
Key QQ4 2024 metrics and notable year-over-year (YoY) vs quarter-over-quarter (QoQ) trends:
- Revenue: USD 48.087 million; YoY change +12.47%; QoQ change -11.00% (vs Q3 2024 USD 54.032 million). Gross margin (GAAP gross profit / revenue) USD 17.944 million, gross margin 37.32% for the quarter; YoY gross profit up 125.6%, QoQ down 4.55%.
- Operating income: USD 1.79 million; operating margin 3.72%. YoY operating income up ~125.8%; QoQ up ~76.18%.
- EBITDA: USD -12.31 million; EBITDA margin -25.59%. The EBITDA figure is dominated by non-operating items and does not reflect cash-based profitability.
- Net income: USD -0.566 million; net income margin -1.18%. YoY net income up 96.05% (negative base in prior year), QoQ decline of -106.31%.
- Earnings per share (basic/diluted): -$0.10 per share; YoY EPS up ~91.74%; QoQ EPS down ~126.32%.
- Cash flow: Net cash provided by operating activities (CFO) USD -11.86 million; free cash flow (FCF) USD -13.26 million. Net cash used in investing activities USD -46.69 million; net cash used provided by financing activities USD -5.97 million; net increase in cash USD +24.85 million driven by other investing activities (+USD 46.74 million). Ending cash balance USD 39.60 million.
- Balance sheet: Total assets USD 99.999 million; total liabilities USD 112.857 million; total stockholders' equity negative USD -12.858 million. Short-term liquidity ratios: current ratio 1.149, quick ratio 0.935, cash ratio 0.624. Total debt USD 60.708 million; net debt USD 21.112 million (cash and equivalents offsetting a portion of debt). Cash and equivalents USD 39.596 million; long-term debt USD 44.457 million.
- Productivity and asset turnover indicators are modest: receivables turnover 2.78x, inventory turnover 2.39x, fixed asset turnover 12.15x, asset turnover 0.198x. Cash flow per share (operating) -$0.845, free cash flow per share -$0.849.
Note: The financials show a material gap between EBITDA and cash profitability due to non-operating charges and working capital movements, underlining the importance of monitoring whether the company can convert earnings growth into sustained cash flow and deleveraging over time.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
48.09M
12.47%
-11.00%
Gross Profit
17.94M
125.60%
-4.55%
Operating Income
1.79M
125.80%
76.18%
Net Income
-566.00K
96.05%
-106.31%
EPS
-0.10
91.74%
-126.32%
Key Financial Ratios
currentRatio
1.15
grossProfitMargin
32.6%
operatingProfitMargin
3.72%
netProfitMargin
-1.18%
returnOnAssets
-0.23%
returnOnEquity
4.4%
debtEquityRatio
-4.72
operatingCashFlowPerShare
$-0.85
freeCashFlowPerShare
$-0.85
priceToBookRatio
-11.18
priceEarningsRatio
-63.47
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript highlights could not be produced from the provided data. The earningsTranscript field is empty, and no management commentary or quotes were supplied for QQ4 2024. As a result, the analysis cannot summarize management themes, strategic pivots, or market conditions from the earnings call. If a transcript or management quotes are supplied, a thematically organized highlights section will be added detailing strategy, operations, market conditions, and guidance quotes.
No transcripts available to extract management quotes in the provided data.
— N/A
No transcripts available to extract management quotes in the provided data.
— N/A
Forward Guidance
No formal forward guidance was provided in the supplied data. Given the quarter's earnings profile and the absence of explicit targets, the outlook remains subject to several near-term variables: (1) demand trajectory for 4G/5G fixed wireless and IIoT deployments in large enterprises and government segments; (2) the pace of customer wins in private LTE/5G networks and remote monitoring solutions; (3) the company’s ability to improve gross margins and reduce non-operating expense drag; (4) working capital dynamics and capex intensity during the next fiscal year; and (5) deleveraging progress as cash flow improves. Management commentary (when available) would clarify expected quarterly revenue progression, gross margin expansion opportunities, and any cadence in R&D or SG&A investments tied to go-to-market initiatives. Investors should monitor: quarterly revenue stability (especially QoQ trends), non-operating income/expense timing, cash flow evolution (CFO/FCF), and the trajectory of debt levels and equity quality.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0A52.L Focus
37.32%
3.72%
4.40%
-63.47%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given QQ4 2024 results, Inseego presents a high-risk, high-variance investment proposition. The company demonstrated top-line growth YoY and positive operating income, signaling that the core business is capable of generating operating profit. However, the negative EBITDA driven by non-operating items, coupled with negative net equity and a debt load that requires ongoing liquidity, dilutes the quality of earnings in the near term. The key to the investment thesis is the successful monetization of SaaS offerings (Inseego Subscribe) and a material improvement in cash flow, which would unlock leverage capacity and fund further growth initiatives without increasing equity risk. In the absence of explicit forward guidance, investors should monitor quarterly revenue stability, gross margin progression, the trajectory of non-operating expenses, and whether CFO/FCF turns positive in upcoming quarters. Relative to sector benchmarks, Inseego’s current profitability and balance sheet risk imply a cautious stance until there is clearer evidence of sustainable profitability and deleveraging.
Key Investment Factors
Growth Potential
Inseego operates at the intersection of wireless hardware (4G/5G routers, gateways, IIoT devices) and hosted SaaS platforms (fleet/asset management, telematics, and SaaS spend management). The growth thesis hinges on: (a) expanding private LTE/5G deployments across industrial and enterprise verticals, (b) monetizing SaaS through Inseego Subscribe and related cloud services, and (c) cross-selling hardware and software solutions for connected devices and asset tracking. If the company can scale SaaS adoption and monetize recurring revenue with improved gross margins, operating leverage could materialize as scale expands. Additionally, ongoing 5G network rollouts may sustain demand for edge devices and secure connectivity solutions.
Profitability Risk
Key risks include: (a) persistent negative net income and cash burn delaying profitability realization; (b) high non-operating expense drag that can swing earnings despite positive operating income; (c) negative stockholders’ equity indicating balance sheet fragility and potential equity dilution risk; (d) leverage exposure with USD 60.7m total debt in the context of modest revenue scale; (e) reliance on enterprise and government spending cycles; (f) customer concentration and competitive pressures in a fragmented market of device manufacturers and cloud service providers; (g) FX and supply chain volatility affecting component costs and delivery timelines.
Financial Position
Liquidity remains relatively modest but accessible with USD 39.6m of cash and equivalents. The company carries total liabilities USD 112.86m against total assets USD 100.0m, resulting in negative equity of USD -12.86m. Net debt stands at USD 21.11m, indicating the company has debt that exceeds cash on hand by a modest margin. The current ratio of 1.149x suggests near-term liquidity comfort but a fragile balance sheet footprint. Near-term cash generation is contingent on turning operating income into positive cash flow; prudent liquidity management and potential balance sheet optimization will be critical to support ongoing product development, sales expansion, and working capital needs.
SWOT Analysis
Strengths
Positive operating income in QQ4 2024 and a solid gross margin (about 37% per income statement) indicate a viable core business with pricing and cost structure that can support profitability if non-operating headwinds are reduced.
Cash balance of USD 39.6 million provides liquidity to fund R&D, go-to-market efforts, and selective working capital needs.
YoY revenue growth of approximately 12.5% demonstrates demand resilience for Inseego’s hardware and software offerings in a growing market for IoT/IIoT and private networks.
Weaknesses
Net loss persisted in QQ4 2024 with EBITDA deeply negative (-USD 12.31m) due largely to non-operating expenses, indicating earnings quality concerns.
Negative stockholders’ equity (-USD 12.86m) and a modest net debt position (~USD 21.11m) reveal balance sheet fragility and potential dilution risk if capital needs escalate.
Reliance on non-operating items and working capital movements contributing to cash burn; CFO negative (-USD 11.86m) and FCF negative (-USD 13.26m).
Opportunities
Upside from accelerating adoption of private LTE/5G networks and IoT solutions across industries, creating upsell opportunities for hardware plus SaaS platforms.
Potential margin expansion through SaaS monetization (Inseego Subscribe) and improved product mix toward higher-margin software and services.
Longer-term leverage of cloud-based analytics, remote management, and subscription services to stabilize cash flows and reduce customer churn.
Threats
Market volatility in technology hardware cycles and sensitivity to corporate IT/telecom capex budgets could depress hardware demand.
Competitive landscape with numerous equipment vendors and service providers may suppress pricing power and discounting pressure.
Macro uncertainties and potential tightening in enterprise/government IT budgets could delay large deals and extend sales cycles.